PenFed credit union Personal Loan Full Review
Get away from high rates and hidden fees imposed by major banks and easily unlock a $50,000 unsecured loan!
Are you tired of the major banks’ fees and hidden penalties? Are you looking for a soft and reliable credit union? Then your search is over!
Meet PenFed, a credit union that has banished its own fees and can still give you a $50,000 loan with 7.74% APR interest rates.
Got interested? Check out all the details you should know about PenFed’s personal loan, including its terms, fees, amounts, advantages, and much more.
More about Pentagon Federal Credit Union
Commonly referred to as PenFed, this credit union was established in 1935 in Washington, D.C. with the aim of facilitating credit access for members associated with various national defense forces.
Over the decades, PenFed has experienced remarkable growth and currently stands as the third-largest federal credit union, boasting assets of $25 billion and a membership base exceeding 1.8 million individuals.
Today, PenFed provides an extensive array of financial products and services, including checking and savings accounts, credit cards, mortgages, and personal loans.
As one of the biggest credit unions in the country, PenFed offers a simple membership approval process and the loan you have been looking for.
How PenFed Personal Loan works?
PenFed’s personal loan has emerged as a flexible and affordable borrowing solution, suitable for a variety of purposes such as debt consolidation, home improvements, or covering unforeseen expenses.
With PenFed, you can secure a personal loan of up to $50,000, and the best part is that it’s an unsecured loan, eliminating the need for collateral.
Despite being unsecured, PenFed offers competitive interest rates ranging from 7.74% to 17.99% APR, with repayment terms spanning from 6 to 60 months. As is the case with most credit unions in the United States, membership in PenFed is a prerequisite for requesting a personal loan.
However, there’s no need to fret. Since 2018, PenFed has opened its doors to individuals nationwide, allowing anyone to join by simply making a $5 deposit into one of its shared accounts.
Originally established to facilitate credit access for the Washington, D.C. population and the U.S. military and defense personnel, PenFed loans come with numerous benefits.
These advantages start with the absence of certain fees commonly imposed by major banks and financial institutions.
When obtaining a loan through PenFed, you won’t be subjected to application or origination fees.
Furthermore, should you choose to repay your loan before the agreed-upon term, you won’t be burdened with prepayment penalties or fees.
PenFed also extends interest rate discounts to its members, further reducing interest rates and fees.
Other advantages of the PenFed personal loans include:
- Multiple-use funds
- Fast approval process
- Online account management
- Flexible repayment terms
Lastly, Penfed is known for its excellent customer service, with friendly and knowledgeable representatives available to answer any questions and provide assistance throughout the loan process.
Are there any cons?
While PenFed offers many advantages within its membership and personal loans, some details about the credit union’s policies deserve special attention.
One of the major drawbacks of PenFed comes for those with a less-than-perfect credit history, since the FCU will rely almost 100% on your credit when making a loan.
So, borrowers with lower credit scores may end up paying higher interest rates over the life of the loan.
While the FCU does not charge any kind of origination fee, they do charge for late payments.
How do I apply?
If you get interested, tap on the green button and check out the step-by-step guide on how to apply for PenFed’s personal loans. You will also get a list of PenFed’s major membership criteria.